DoorDash Agrees to Acquire Instacart for $17 Billion at a 26% Premium
Key Facts
DoorDash and Instacart announced a definitive acquisition agreement on October 29, after entering into the merger agreement on October 28, with an equity value of about $17 billion. The agreement sets the consideration at $65 per Instacart share, a 26% premium to the share’s closing price on October 22, before media reports about the deal. Cash will account for at least 75% of the total consideration, while DoorDash shares will account for no more than 25%. Instacart shareholders may elect to receive cash, DoorDash shares or a combination of the two, with proration if demand for shares exceeds the specified cap. Instacart’s board approved the agreement unanimously, while shareholders holding about 19% of the voting power signed agreements requiring them to vote in favor of it.
DoorDash is betting on combining its reach and logistics expertise with Instacart’s grocery-focused technology and retailer relationships. DoorDash says Instacart customers may be able to shop at more than 50,000 additional stores after the deal closes, alongside about 100,000 stores currently on the Instacart platform. Instacart works with more than 2,200 retail brands, and its platform spans e-commerce, fulfillment, in-store technology and advertising. DoorDash also expects combining DashPass and Instacart+ memberships to generate about $100 million in annual membership-fee savings. The company said Instacart’s brand and app will remain after the deal closes, but the expanded store access and announced savings depend on completion.
The agreement comes as the companies’ U.S. market-share trajectories diverge. According to Consumer Edge data cited by the Associated Press, Instacart’s share of delivery-platform spending fell from 26% five years ago to 18% in data published in October 2026. Over the same period, DoorDash’s share rose from 44% to 59%. The acquisition thus combines a delivery platform that has expanded its share with a company that owns a large network of grocery stores and technologies for operating their digital platforms. DoorDash says combining the network and technology may expand the options available to retailers and customers, while regulatory concerns center on the deal’s effect on competition.
DoorDash’s third-quarter 2026 results show strong growth in the scale of its business and revenue. Orders rose 28% to 993 million, marketplace transaction value increased 36% to $33.9 billion, and revenue rose 34% to $4.6 billion. Net income attributable to common shareholders climbed 91% to $466 million. Excluding the impact of the Deliveroo acquisition, orders grew 17%, transaction value grew 23%, and revenue grew 23%. The comparison between reported growth rates and those excluding the acquisition shows its impact on the reading of DoorDash’s business growth during the quarter.
Instacart also posted growth in the third quarter, with gross transaction value rising 15% to $10.528 billion and orders increasing 10% to 91.4 million. Revenue reached $1.095 billion, up 17% year over year. Net income was $147 million, while adjusted earnings before interest, taxes, depreciation and amortization totaled $342 million, up 23%. Chief Executive Chris Rogers described the quarter as “the company’s best quarter as a public company,” citing 15% growth in transaction value. The results form the backdrop to the deal, as Instacart canceled its earnings call scheduled for November 5, suspended its financial guidance and withdrew its long-term guidance.
The deal’s execution depends on cash and stock financing within the limits set by the agreement. DoorDash said it will use available cash and borrowings to fund the cash portion, and has a commitment for a 364-day unsecured bridge loan facility. The company said closing the deal is not conditional on obtaining this financing. Closing, however, requires approval from Instacart shareholders and regulatory clearances, including reviews in Canada and Israel. The companies are targeting completion at the end of 2027 or during the first half of 2028, leaving the approval process open beyond Instacart’s third-quarter results announcement.
The companies’ overlap in grocery delivery is central to competition concerns. An e-commerce analyst told Reuters the overlap makes close scrutiny under antitrust laws highly likely. In a separate inquiry from the merger review, the Federal Trade Commission issued orders to DoorDash, Instacart and seven other companies seeking information about the use of personal data to set prices or compensate workers. The 45-day response period begins on the date each company receives its order. In afternoon trading on October 29, DoorDash shares rose 5% while Instacart shares fell 1.6%.